Litigation Funding Powers Sex Abuse Cases as Mass Torts Slow

Law firms pursuing sexual abuse suits against large institutions like the Boy Scouts, the Catholic Church, and a federal prison have turned to outside funders amid increasing competition to land cases.

Moves by states to enlarge the window for filing older sex abuse claims prompted a flood of litigation accusing organizations of turning a blind eye to exploitation. Plaintiffs’ firms are using specialized banks, hedge funds, and litigation funders to sustain the cases.

“You’ve got the cost of litigation as well as depositions and all those other things, so you have to have the capital in order ...